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There are two reasons for this. 1) when a company does well financially, it pays a dividend to its shareholders. 2) they hope that the price of the share will rise and they can make money when they sell them
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∙ 15y ago
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In what two ways do security markets provide liquidity?
Security markets provide liquidity to companies through shares and corporate bonds. When people buy shares, the companies can use those as capital to expand various ventures.
What is redeemable shares?
These are special shares that you get with ordinary shares from some companies, which they buy back off you at a price instead of paying a dividend.
What are mutual fund shares?
Mutual fund shares are stocks of mutual funds, fractions of mutual funds just as companies have shares.
Can New company issue share at discount?
Most of the time, the new companies will offer their shares at discount prices. There is no law that governs/controls the prices at which the company can offer their shares to people for sale.
How do you buy shares from companies?
Go to the stock market
What cause people to buy shares in joint stock companies?
fish n chips lol
In what two ways do security markets provide liquidity?
Security markets provide liquidity to companies through shares and corporate bonds. When people buy shares, the companies can use those as capital to expand various ventures.
Why companies undersubscribed shares?
to earn profits
What companies does symeon freemanstein have shares in?
MACCAS
What are the differences between limited liability company and cooperatives on the basis of shares?
Co operative companies give shares to their workers, so as you work for the company, shares are given out. Sometimes these companies will give more shares the longer you work for them. Limited liability companies issue shares either on the sotck market, where anyone can buy them, or to those inside the company themselves.
Differences in public limited companies and private limited companies in India?
Public Limited Comapnies have widely held ownership ( Shares) They have unlimited liability and PVT LTD companies have limited no of People who have the shares of the company (1 - 24 persons), the ownership of the company is limited and hence the liability is also limited.
What is redeemable shares?
These are special shares that you get with ordinary shares from some companies, which they buy back off you at a price instead of paying a dividend.
What are mutual fund shares?
Mutual fund shares are stocks of mutual funds, fractions of mutual funds just as companies have shares.
Why do stocks sell shares?
Stocks don't sell shares, companies do. They do do to generate funds in IPOs.
Where would a starting trader go for trading shares?
A starting trader would go for trading shares by visiting companies that deal with trading shares. Companies, such as cityindex, onetwotrade and others to find out information on how a trader, who is just starting should get trading shares.
Can New company issue share at discount?
Most of the time, the new companies will offer their shares at discount prices. There is no law that governs/controls the prices at which the company can offer their shares to people for sale.
How do you buy shares from companies?
Go to the stock market
